The Warning signs of Online Fraud and How to avoid it

The number may seem grim for Web-based trading. In 2004, the States United States States alone, computer users logged in more than 207,000 Internet fraud reports to the American the Internet Crime Complaint Center. If you look hard at this point, you may be surprised, and a good bit scared that implicitly. You may ask, "Is it truly safe to buy or sell at an online site?"

Put simply, the answer is: yes. The Internet is an incredibly powerful tool for business, so you can not give it more than just because of a few hooks and conmen-even if they look as if they're behind every pop-up and banner advertising. The truth is that you can create opportunity and to earn more money online than you can lose in fraud.

Better yet, you could lose absolutely nothing if you know the warning signs of fraud and tricks to avoid danger to your web based business.

Whether you want to buy or sell goods online, the first and the best ways to fight fraud is prevention. There are some warning signs to look for, to be offset against a chorus of alarms and flashing red lights in your head. Do not do business with this person! For buyers, these potential warning signs to be when a seller:

request that you pay through undetectable consider as Western Union or MoneyGram, or a third party or via an overseas address. You should ask yourself and the seller, why he or she will not accept payment options that are traceable and convenient for you.

posts an image on his auction or classified ad that is clearly from an external source. Sometimes these images can not even match the type of account, not to feel that the ad features.

sells a typical expenditure on cut-rate prices, which are a good indicator that it could be counterfeit.

refuses to give tracking numbers, when you buy a product. Tracking numbers are another way to trace a valid transaction.

offers only excuses, instead of help if your bought goods do not arrive at your doorstep.

If you are a seller, you should be vigilant for signs of suspicious purchases, like when a buyer:

requesting to pay only a portion of the fee offered to pay the rest sometime in the future. This is the old excuse from Popeye's wimpy friend who could always be heard saying: "I would pay you Tuesday for a hamburger today." Wimpy never paid Tuesday.

send you a cashier's check for more money than the agreed price "by a mistake." In this scam, so the buyer asks you to repay the difference by personal check, bank transfer or postal order, before you find out that the cashier's check was not ready. Believe it or not, this scheme works because cashier's checks can be paid before they bounce.

send you a cashier's check for the correct amount, but then require a refund, requesting that you repay with your own money. See the scheme above for how this trick works.

These warning signs, of course, are only a handful of frauds and scams out there. Conmen are good at what they do, trying to separate you from your money. Therefore it is best to always follow these golden rules for online trading when buying or selling at an Internet auction or classified site.

Keep your common sense. No matter how good a deal seems, or how many customers say they want to pay, always remember the old adage: "If it sounds too good to be true ...."

Does your company locally. Try to sell and buy from your neighbors as much as possible. It is safer, easier and better for your local economy. What's more, it saves you the hassle of dealing with foreign buyers and sellers. Although they may be lawful to treat them can be complicated because of different legal systems and customs that can make any conflict difficult.

Seal the deal with plastic. Pay for goods with credit cards and allow your customers to request payment for purchase is a great all-around business decision. Under U.S. law, all plastic purchase protection against fraud and allowed to be disputed in case of problems.

Meet in the middle man. Intermediary services are virtual middle men that protect both buyers and sellers from cyber shysters. Services by Escrow agreement to act as a holding pen for both payment and sale items until both buyer and seller are happy. Only then will Landfill Agreement complete a transaction.

Buy with PayPal. As Escrow agreement and credit cards do, PayPal protects against fraud for both buyers and sellers. It is a safe and reliable way of transferring money over the Internet. No wonder PayPal is the most popular online money transfer service.

You can see that the odds are really in your favor when it comes to doing business on online classified or auction sites. Resource of the Internet is far too valuable than to be taken away by a few crooks and conmen. It simply comes down to being smart, sensible, and attention when buying and selling on the web. Then again, that's what all good business is about, whether you do it in a mall or on the information highway.